"I Ran Out of Money" Is Not Force Majeure (Explained in 60 Seconds)
"I Ran Out of Money" Is Not Force Majeure is a 60-second legal explainer about when force majeure can excuse contract performance. It explains why an event must be beyond a party’s control and make performance truly impossible, and why lack of funds rarely excuses payment.
This video is general information, not legal advice. Force majeure rules depend on your contract and the law that governs it — speak to a qualified lawyer about your situation.
Key takeaways
- Force majeure usually covers events such as natural disasters, wars, pandemics or government action.
- The event must be beyond the party’s control.
- Performance must be truly impossible, not just harder or more expensive.
- Most clauses require prompt notice, often in writing.
- Running out of money generally does not excuse a payment obligation.
What this video covers
The video explains force majeure, French for “superior force,” as a contract rule that can excuse a party from performing when something huge and unforeseeable happens. It begins with the meaning of the term, then outlines events that usually qualify, including natural disasters, wars, pandemics and government action. Next, it explains two key requirements: the event must be beyond the party’s control, and it must make performance truly impossible. Making a contractual obligation harder or more expensive to fulfil is not enough. The video also notes that most force majeure clauses require the affected party to notify the other side quickly, often in writing. Turning to what does not count, the explainer addresses the claim “I ran out of money.” Lack of funds is generally not force majeure and rarely excuses a payment obligation. The closing guidance is to read the clause and send the invoice. In common-law countries such as England, force majeure applies only if the contract contains a force majeure clause. In civil-law countries such as France, the law itself provides a defence. The video is general information, not legal advice: the applicable rules depend on the contract and governing law, so it recommends speaking to a qualified lawyer about your situation.
